Many of us love finding a great item on Facebook Marketplace at an even better price. But oftentimes, if it seems too good to be true, it likely is. Online marketplaces like Facebook Marketplace, Craigslist, and OfferUp are becoming increasingly popular. These are often the best places to shop if you’re looking for a good deal on new and used items. But beware, scammers lurk behind some of those listings, and their payment method of choice is a gift card. Why? Because gift cards are untraceable, they hide your details, and the payments cannot be reversed. But don’t worry, at dundle we’ve become excellent at spotting this type of fraud. Read on to learn how to spot a scam and stay safe so you can bargain-hunt stress-free online.
How do Marketplace Scams Involving Gift Card Fraud Work?
So you’ve found a beautiful antique vase on an online marketplace, and you’re ready to buy. You’ve reached out to the seller, you’ve asked all the right questions about the product, and all you need to do is complete the purchase. But wait, the seller wants you to pay using a gift card. Red flag alert! This is probably a scam. Fake sellers often insist that gift cards are the only “acceptable” payment method, then disappear after collecting the gift card code and PIN without delivering anything. Likewise, fake buyers exist on marketplaces too and may offer gift cards in exchange for items, but they’ll send cards with no remaining balance, ones that are already used or have been tampered with in some way.
Scammers will also hide behind fake personas such as distant buyers, collectors, or military personnel with seemingly legitimate excuses to avoid meeting in person.
But why are gift cards so appealing to scammers?
It’s their anonymity, ease of transfer, and irreversibility—once they get the card details, they can use or sell it immediately, leaving you with little recourse. To stay vigilant, the key red flags to look out for are requests that seem overly urgent, reluctance to meet in person, and suspicious profiles that are newly created or lack personal information. Stay safe and avoid paying for items with a gift card or accepting gift cards as payment.
How to Spot a Marketplace Scam
Scammers are experts at using subtle (and not-so-subtle) tactics to fool you. The good news is, we’ve listed some tips below to help you spot a marketplace scam.
1. Odd Payment Requests like Gift Cards
The first major red flag is if a buyer or seller wants you to use gift cards as payment. This can go both ways for buying and selling. They will ask you to pay with a gift card like Steam or Amazon, or when they buy from you, ask if they can complete the transaction with a gift card. When this happens, it’s almost certainly a scam.
2. There is a strong sense of urgency
This happens when you want to buy something and the scammer tells you that multiple people are interested, so you have to act fast. That means that you won’t think it through and often make the purchase without questioning it. But remember that whenever someone tries to rush you into making a payment, especially via gift card, it is a warning sign.
They do not want to meet in person
If you ask for a meet-up to check the product, and they refuse, then be careful. Whatever the excuse, it’s most likely a tactic to avoid any personal interaction. Legitimate buyers and sellers will usually have no issue meeting in person to make the exchange.
4. Extra tip: spotting fake profiles
A lot of scammers create profiles that look legitimate at first glance but are missing key details. Here’s what to watch for:
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** There is little to no social history:**
Often new profiles are used by the scammer, so there might be little to no activity or history. Look for profiles with recent start dates or those that have very few interactions or posts. Sometimes it also happens that old profiles are hacked and look almost normal. The key here is to check the difference between previous and current activity. -
Few Personal Photos:
Scammers might use stock images or a few generic photos that don’t reveal much about their identity. If you see profile pictures that look too polished or random, this could be a sign that the profile is fake. -
Only a handful of friends or connections:
It’s no crime to keep your circle small, but it is often a red flag if a profile has very few friends or mutual connections.
How to Protect Yourself on Online Marketplaces
So you know how to spot a scam and have the tools to prevent it, but there are a couple of other security measures you can take to make sure you avoid falling victim to gift card scams and other fraud.
1. Always Use Safe Payment Methods
Number one tip: never pay with a gift card and always use secure and traceable payment options. With that, we mean PayPal, bank transfers, or other trustworthy payment processors that offer fraud protection.
This gives you a record of the transaction and, depending on the payment provider, also has buyer protection policies in place. Always avoid paying with gift cards. It’s virtually untraceable and there is no recourse if you get scammed. Once a scammer has the gift card code, they can use it instantly, leaving you without any way to get your money back.
2. Make sure to Research the Buyer
Before agreeing to a transaction, take a few moments to research the buyer or seller. Check their profile and see if they have a history on the platform, read reviews if they’re available, and look for any signs of suspicious behavior or fake profiles. A little background check can go a long way in keeping you safe.
3. Check Reviews Where Possible
On the larger marketplaces or platforms that have a review system, always check ratings and comments from other users. This way, you can find out quickly if someone has been scammed in the past. Also, reviews that are overly optimistic and generic might be a red flag.
4. Meet Up in Person
The best way to know if you are buying what you see on screen is to meet up with the seller in person. This is often the safest option when buying or selling on an online marketplace. Meeting in person gives you a chance to inspect the item before exchanging money and adds an extra layer of accountability. It’s also a good opportunity to verify the legitimacy of the buyer or seller firsthand.
How dundle is combatting Gift Card Scams
In the ever-evolving online fraud landscape, dundle’s Risk Department has identified a worrying rise in gift card scams, particularly on platforms like Facebook Marketplace. Scammers often target users by requesting popular cards for Neosurf and Steam, exploiting the anonymity these cards offer. The United Kingdom also seems to be a hotbed for these scams, with patterns emerging that help the team anticipate risks.
Real-life cases show scammers' tactics, from tricking victims into sharing gift card codes to reselling stolen codes or using them instantly on digital platforms. To combat this, dundle actively monitors suspicious activities, applying targeted restrictions in high-risk regions and for specific products based on reported incidents and data trends. We are committed to ensuring customer safety and raising awareness, which is why dundle regularly shares informative articles on cybersecurity.
As a proud member of the Merchant Risk Council (MRC), a global non-profit dedicated to payment security and fraud prevention in ecommerce, dundle further strengthens its efforts to combat fraud and protect its users.
Staying Safe Together: dundle’s Commitment to Your Security
Staying safe online requires vigilance not fear. So don’t be scared, just stay informed. Knowing the key red flags and safety tips is your first line of defense. At dundle, we’ve also got your back. We have a dedicated fraud team that’s continually innovating to stay ahead of emerging threats. If you encounter any suspicious activity or scam attempts like delivery scams, pet scams, or romance scams - especially involving gift cards - report them to the marketplace platform and to dundle. Together, we can create a safer environment for everyone online.
